XRP Could be Facing a 18% Breakdown, Hidden Bear Flag Pattern Shows

XRP recently bounced about 3% from its $1.31 low, reclaiming $1.35, but this move appears to be forming the flag portion of a bear flag pattern following an 18% decline from $1.60. If the lower trendline of this flag breaks, a measured move targeting the $1.08 zone could be triggered.

Further bearish signals come from the 12-hour chart's Relative Strength Index (RSI), which shows a hidden bearish divergence (lower price high, higher RSI high), suggesting a continuation of the downtrend if confirmed by a close below $1.35. Derivatives data shows rising open interest during the bounce, indicating leveraged long positions that could fuel a liquidation cascade if the pattern fails.

Conversely, long-term holders (hodlers) have been reducing their positions by about 3.47% since March 25, indicating a lack of conviction from spot holders. The key level is $1.35; holding above it delays the bearish setup, but a break below $1.31 would confirm the pattern, targeting $1.08, while only a move above $1.60 would fully invalidate the bearish structure.

(Source：BeInCrypto)